Federal Register / Vol. 86, No. 136 / Tuesday, July 20, 2021 / Notices 38377 

13 15 U.S.C. 78f(b)(8). 

14 15 U.S.C. 78s(b)(3)(A). 

15 17 CFR 240.19b–4(f)(2). 

16 15 U.S.C. 78s(b)(2)(B). 

17 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

discriminatory because the 

requirements, and credits, and even 

entire pricing tiers, would be eliminated 

in their entirety and would no longer be 

available to any ETP Holder. 

For the foregoing reasons, the 

Exchange believes that the proposal is 

consistent with the Act. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

In accordance with Section 6(b)(8) of 

the Act,13 the Exchange believes that the 

proposed rule change would not impose 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. 

Intramarket Competition. The 

Exchange’s proposal to eliminate certain 

requirements and credits, and pricing 

tiers in their entirety, will not place any 

undue burden on intramarket 

competition that is not necessary or 

appropriate in furtherance of the 

purposes of the Act given that not a 

single ETP Holder has qualified for any 

of the credits under the pricing tiers that 

are the subject of this proposed rule 

change in the past six months. To the 

extent the proposed rule change places 

a burden on competition, any such 

burden would be outweighed by the fact 

that none of the pricing tiers proposed 

for deletion have served their intended 

purpose of incentivizing ETP Holders to 

more broadly participate on the 

Exchange. Moreover, ETP Holders can 

choose to trade on other venues to the 

extent they believe that the credits 

provided are too low or the qualification 

criteria are not attractive. 

Intermarket Competition. The 

Exchange believes the proposed rule 

change does not impose any burden on 

intermarket competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

Exchange operates in a highly 

competitive market in which market 

participants can readily choose to send 

their orders to other exchanges and offexchange venues if they deem fee levels 

at those other venues to be more 

favorable. Market share statistics 

provide ample evidence that price 

competition between exchanges is 

fierce, with liquidity and market share 

moving freely from one execution venue 

to another in reaction to pricing 

changes. In such an environment, the 

Exchange must continually adjust its 

fees and rebates to remain competitive 

with other exchanges and with offexchange venues. Because competitors 

are free to modify their own fees and 

credits in response, and because market 

participants may readily adjust their 

order routing practices, the Exchange 

does not believe this proposed fee 

change would impose any burden on 

intermarket competition. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were solicited 

or received with respect to the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change is effective 

upon filing pursuant to Section 

19(b)(3)(A) 14 of the Act and 

subparagraph (f)(2) of Rule 19b–4 15

thereunder, because it establishes a due, 

fee, or other charge imposed by the 

Exchange. 

At any time within 60 days of the 

filing of such proposed rule change, the 

Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or otherwise in furtherance of 

the purposes of the Act. If the 

Commission takes such action, the 

Commission shall institute proceedings 

under Section 19(b)(2)(B) 16 of the Act to 

determine whether the proposed rule 

change should be approved or 

disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

NYSEARCA–2021–60 on the subject 

line. 

Paper Comments 

• Send paper comments in triplicate 

to: Secretary, Securities and Exchange 

Commission, 100 F Street NE, 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–NYSEARCA–2021–60. This 

file number should be included on the 

subject line if email is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

internet website (http://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for website viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE, 

Washington, DC 20549 on official 

business days between the hours of 

10:00 a.m. and 3:00 p.m. Copies of the 

filing also will be available for 

inspection and copying at the principal 

office of the Exchange. All comments 

received will be posted without change. 

Persons submitting comments are 

cautioned that we do not redact or edit 

personal identifying information from 

comment submissions. You should 

submit only information that you wish 

to make available publicly. All 

submissions should refer to File 

Number SR–NYSEARCA–2021–60 and 

should be submitted on or before 

August 10, 2021. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.17

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2021–15335 Filed 7–19–21; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–92404; File No. SR–Phlx– 

2021–41] 

Self-Regulatory Organizations; Nasdaq 

PHLX LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend Various Phlx 

Rules 

July 14, 2021. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on July 13, 

2021, Nasdaq PHLX LLC (‘‘Phlx’’ or 

‘‘Exchange’’) filed with the Securities 


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38378 Federal Register / Vol. 86, No. 136 / Tuesday, July 20, 2021 / Notices 

3FBMS, an order management system, is the 

gateway for the electronic execution of equity, 

equity index and U.S. dollar-settled foreign 

currency option orders represented by Floor 

Brokers on the Exchange’s Options Floor. Floor 

Brokers contemporaneously upon receipt of an 

order and prior to the representation of such an 

order in the trading crowd, record all options orders 

represented by such Floor Broker to FBMS, which 

creates an electronic audit trail. The execution of 

orders to Phlx’s electronic trading system also 

occurs via FBMS. The FBMS application is 

available on hand-held tablets and stationary 

desktops. 

4Utilizing FBMS while not physically present on 

the Trading Floor would be considered remote 

access. 

5See Securities Exchange Act Release No. 90909 

(January 13, 2021), 86 FR 6389 (January 21, 2021) 

(SR–Phlx–2021–02) (Notice of Filing and Immediate 

Effectiveness of a Proposed Rule Change To Modify 

Phlx Options 8, Section 28, ‘‘Responsibilities of 

Floor Brokers’’ and Section 30, ‘‘Crossing, 

Facilitation and Solicited Orders’’) (‘‘Prior Rule 

Change’’). 

6Supplementary Material .08(i)–(vii) to Options 

10, Section 6 describe branch office exclusions. 

7Phlx General 4 Rules are incorporated by 

reference to the General 4 Rules of The Nasdaq 

Stock Market LLC. General 4, Rule 1230 describes 

associated persons exempt from registration. 

8 General 4 Rules describe registration, 

qualification and continuing education 

requirements. Phlx floor members are required to 

comply with Phlx General 4 Rules. If a member is 

no longer present on a trading floor, the member 

would not be subject to the exemption associated 

with effecting transactions on the floor of another 

national securities exchange. A Floor Broker 

conducting a Remote FBMS Transaction would 

therefore need to comply with General 4 

registration requirements, including but not limited 

to, the Series 57 registration. 

and Exchange Commission (‘‘SEC’’ or 

‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III, below, which Items have been 

prepared by the Exchange. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend 

Phlx Rules at Options 8, Section 2 

(Definitions); Section 8 (Trading Floor 

Registration); Section 12 (Clerks); 

Section 22 (Execution of Options 

Transactions on the Trading Floor); 

Section 28 (Responsibilities of Floor 

Brokers); and Section 39 (Option Minor 

Rule Violations and Order and Decorum 

Regulations) at C–2 (Options Floor 

Based Management System). 

The text of the proposed rule change 

is available on the Exchange’s website at 

https://listingcenter.nasdaq.com/ 

rulebook/phlx/rules, at the principal 

office of the Exchange, and at the 

Commission’s Public Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

Exchange has prepared summaries, set 

forth in sections A, B, and C below, of 

the most significant aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend 

Phlx Rules at Options 8, Section 2 

(Definitions); Section 8 (Trading Floor 

Registration); Section 12 (Clerks); 

Section 22 (Execution of Options 

Transactions on the Trading Floor); 

Section 28 (Responsibilities of Floor 

Brokers); and Section 39 (Option Minor 

Rule Violations and Order and Decorum 

Regulations) at C–2 (Options Floor 

Based Management System). Each 

change is described below. 

The Exchange also proposes a 

technical amendment to Options 10, 

Section 20 (Options Communications). 

Options 8, Section 2 

The Exchange proposes to amend 

Options 8, Section 2, Definitions, to 

alphabetize the existing definitions. The 

Exchange proposes to relocate and 

renumber the current definitions 

without change, with one exception 

which is described below. The 

Exchange proposes to amend the 

definition of a Presiding Exchange 

Official at current Options 8, Section 

2(a)(4) to add ‘‘/her’’ next to ‘‘his’’ in 

two places. The amendment to this rule 

will bring greater clarity to the defined 

term. 

The Exchange proposes to add two 

new definitions, ‘‘Floor Transaction’’ 

and ‘‘Remote FBMS Transaction’’ to 

Options 8, Section 2. The Exchange 

proposes to define ‘‘Floor Transaction’’ 

as a transaction that is effected in open 

outcry on the Exchange’s Trading Floor. 

This term is currently defined within 

Phlx Options 7, Section 1 for the 

purposes of pricing. The Exchange also 

proposes to define ‘‘Remote FBMS 

Transaction.’’ The Exchange recently 

amended Options 8, Section 28, 

‘‘Responsibilities of Floor Brokers’’ at 

subsection (g) and Section 30, 

‘‘Crossing, Facilitation and Solicited 

Orders’’ at subsection (e) to permit Floor 

Brokers to utilize the Options Floor 

Based Management System (‘‘FBMS’’),3

remotely,4 to enter certain orders that do 

not require exposure in open outcry.5 At 

this time the Exchange proposes to 

define a ‘‘Remote FBMS Transaction’’ as 

a transaction that is effected by a Floor 

Broker, while not physically present on 

the Trading Floor, by submitting limit, 

market or stop orders pursuant to 

Options 8, Section 28(g) and Floor 

Qualified Contingent Cross Orders 

pursuant to Options 8, Section 30(e) to 

the electronic order book, through 

FBMS, pursuant to Options 8, Sections 

28 and 30, respectively, in accordance 

with the Prior Rule Change. Further, the 

Exchange proposes to specify that 

members and member organizations 

must comply with certain regulatory 

requirements, unless the member or 

member organization is otherwise 

exempt from the requirements in 

accordance with Supplementary 

Material .08 to Options 10, Section 6 6

or Phlx General 4, Rule 1230.7 The 

Exchange proposes to state that in order 

to conduct remote FBMS transactions, 

unless exempt from such requirements, 

Floor Brokers are subject to the 

following regulatory requirements: (1) 

Compliance with branch office 

requirements as described in 

Supplementary Material .08 to Options 

10, Section 6, as well as supervision of 

such branch office as described in Phlx 

General 9, Section 20; and (2) 

compliance with applicable registration 

requirements described in Phlx General 

4.8 Finally, the Exchange proposes to 

make clear that all uses of FBMS 

involving open outcry must be 

conducted while physically present on 

the Trading Floor. The proposed 

definition would describe and cite to 

the types of orders that may be 

submitted remotely by a Floor Broker 

for ease of location in the Options 8 

Rules. Further, the proposed rule 

indicates the various existing Phlx Rules 

that are relevant today for regulatory 

compliance when transacting Remote 

FBMS Transactions. The last sentence of 

the proposed rule indicates that open 

outcry transactions may only be effected 

while physically present on the 

Exchange’s Trading Floor and therefore 

uses of FBMS involving open outcry 

must be conducted while physically 

present on the Trading Floor. Today, 

Floor Brokers must comply with these 

regulatory requirements. This proposed 

rule would serve as a guide for Floor 

Brokers conducting Remote FBMS 

Transactions. 


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9See Securities Exchange Act Release No. 90577 

(December 7, 2020), 85 FR 80202 (December 11, 

2020) (SR–NASDAQ–2020–079) (Notice of Filing 

and Immediate Effectiveness of Proposed Rule 

Change To Relocate Its Equity and General Rules 

From Its Current Rulebook Into Its New Rulebook 

Shell). 

10A Limit Order is an order to buy or sell a stated 

number of option contracts at a specified price, or 

better. See Options 8, Section 32(a)(2). 

11A Market Order is an order to buy or sell a 

stated number of option contracts and is to be 

executed at the best price obtainable when the order 

reaches the post. See Options 8, Section 32(a)(1). 

12A Stop-Limit Order is a contingency order to 

buy or sell at a limited price when a trade or quote 

on the Exchange for a particular option contract 

reaches a specified price. A Stop-Limit Order to buy 

becomes a Limit Order executable at the limit price 

or better when the option contract trades or is bid 

on the Exchange at or above the stop-limit price. A 

Stop-Limit Order to sell becomes a Limit Order 

executable at the limit price or better when the 

option contract trades or is offered on the Exchange 

at or below the stop-limit price. 

A Stop Order is a contingency order to buy or sell 

when a trade or quote on the Exchange for a 

particular option contract reaches a specified price. 

A Stop Order to buy becomes a Market Order when 

the option contract trades or is bid on the Exchange 

at or above the stop price. A Stop Order to sell 

becomes a Market Order when the option contract 

trades or is offered on the Exchange at or below the 

stop price. 

Notwithstanding the foregoing, a Stop or StopLimit Order shall not be elected by a trade that is 

reported late or out of sequence. See Options 8, 

Section 32(b)(1) and (2). 

13See Securities Exchange Act Release No. 68960 

(February 20, 2013), 78 FR 13132, 13134 (February 

26, 2013) (SR–Phlx–2013–09) (Notice of Filing of 

Proposed Rule Change To Enhance the 

Functionality Offered on Its Options Floor Broker 

Management System (‘‘FBMS’’) by, Among Other 

Things, Automating Functions Currently Performed 

by Floor Brokers). This filing provided the 

following explanation, ‘‘For example, if a Floor 

Broker enters a two-sided order through the new 

FBMS and there is an order on the book at a price 

that prevents the Floor Broker’s order from 

executing, FBMS will indicate to the Floor Broker 

how many contracts need to be satisfied before the 

Floor Broker’s order can execute at the agreed-upon 

price. If the Floor Broker agrees to satisfy that order, 

consistent with the order placed in his care, he can 

cause FBMS to send a portion of one of his orders 

to Phlx XL to trade against the order on the book, 

thereby clearing it and permitting the remainder of 

the Floor Broker’s order to trade. This functionality 

is optional in the sense that the Floor Broker can 

decide not to trade against the book, consistent with 

order instructions he has been given, and therefore 

not execute his two-sided order at that particular 

price.’’ Phlx XL refers to the electronic order book. 

14See supra note 5. 

15See Securities Exchange Act Release No. 88213 

(February 14, 2020), 85 FR 9859 (February 20, 2020) 

(SR–Phlx–2020–03) (Notice of Filing and Immediate 

Effectiveness of Proposed Rule Change To Relocate 

Rules From Its Current Rulebook Into Its New 

Rulebook Shell). 

16 15 U.S.C. 78f(b). 

17 15 U.S.C. 78f(b)(5). 

18See supra note 4. 

19See supra note 5. 

Options 8, Sections 8 and 12 

The Exchange proposes to update 

cross citations to General 4 Rules within 

Options 8, Section 8, Trading Floor 

Registration and Options 8, Section 12, 

Clerks to reflect The Nasdaq Stock 

Market LLC’s (‘‘Nasdaq’’) General 4 rule 

numbering that was amended.9 These 

amendments are non-substantive. 

The Exchange proposes to amend 

Options 8, Section 12, Clerks, at 

subparagraph (c) to remove the phrase 

‘‘or assigned to their employer’s clearing 

firm.’’ Previously, Clearing Members 

operated posts on the Trading Floor. 

Member organizations were able to 

assign clerks to operate from those 

posts. Clearing Member posts no longer 

exist on the Trading Floor and therefore 

this language is obsolete. 

Options 8, Section 22 

The Exchange proposes to update a 

citation to Options 8, Section 22(a)(3). 

The citation is incorrect and should 

instead refer to Options 8, Section 

22(a)(2). There is no Options 8, Section 

22(a)(3). Similar changes are also 

proposed for Options 8, Section 28(e)(2) 

and Options 8, Section 39 at C–2 to 

correct improper citations. 

Options 8, Section 28 

The Exchange proposes to amend 

Options 8, Section 28, Responsibilities 

of Floor Brokers, at subsection (g) to 

replace the word ‘‘limit’’ with 

‘‘electronic’’ before the term ‘‘order 

book.’’ The term ‘‘electronic order book’’ 

makes clear the order book is being 

described. Also, the Exchange notes 

that, today, Floor Brokers may enter 

limit,10 market,11 stop-limit or stop 

orders 12 into the electronic order book. 

Options 8, Section 28(g) only refers to 

limit orders when it should have also 

noted market, stop-limit and stop 

orders. With respect to remotely 

entering limit orders into the electronic 

order book through FBMS, the Prior 

Rule Change stated that this capability 

exists to enable Floor Brokers to access 

electronic liquidity and/or to clear 

priority orders on the limit order book 

prior to transacting an order in the 

trading crowd through FBMS.13 Placing 

limit orders on the electronic order book 

does not require exposure in open 

outcry and allows Floor Brokers the 

ability to clear resting Customer orders 

from the limit order book for their 

customers in the event that a Customer 

order had priority on the limit order 

book that would otherwise prevent a 

Floor Qualified Contingent Cross Order 

from being entered in compliance with 

Options 8, Section 30(e).14 The 

Exchange notes that Floor Brokers may 

also utilize market, stop-limit and stop 

orders to clear resting Customers’ orders 

from the electronic order book. Also, 

placing market, stop-limit and stop 

orders on the electronic order book does 

not require exposure in open outcry 

today. 

Options 10, Section 20 

The Exchange proposes to update a 

reference to Phx Rule 1049 within 

Options 10, Section 20, Options 

Communications. Phlx Rule 1049 was 

the prior reference to Options 10, 

Section 20.15 At this time the Exchange 

proposes to replace ‘‘Nasdaq PHLX Rule 

1049’’ with ‘‘Options 10, Section 20.’’ In 

addition the Exchange proposes to 

replace ‘‘Nasdaq PHLX’’ throughout this 

rule with ‘‘Phlx’’ to conform the 

reference to the Exchange to the 

remainder of the Rulebook. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act,16 in general, and furthers the 

objectives of Section 6(b)(5) of the Act,17

in particular, in that it is designed to 

promote just and equitable principles of 

trade and to protect investors and the 

public interest. 

Options 8, Section 2 

The Exchange’s proposal to 

alphabetize the existing definitions 

within Options 8, Section 2 is consistent 

with the Act as the definitions will 

become easier to locate. Amending the 

definition of a Presiding Exchange 

Official at current Options 8, Section 

2(a)(4) to add ‘‘/her’’ next to ‘‘his’’ in 

two places is a non-substantive rule 

change. These amendments are 

intended to bring greater clarity to the 

Options 8 Rules. 

The proposal to define ‘‘Floor 

Transaction’’ as a transaction that is 

effected in open outcry on the 

Exchange’s Trading Floor is consistent 

with the Act. This term is currently 

defined within Phlx Options 7, Section 

1 for the purposes of pricing. The 

defined term is consistent with the use 

of that term in the current rules. This 

defined term will bring greater clarity to 

the Options 8 Rules. 

The Exchange’s proposal to define 

‘‘Remote FBMS Transaction’’ is 

consistent with the Act. The Exchange 

recently amended Options 8, Section 28, 

‘‘Responsibilities of Floor Brokers’’ at 

subsection (g) and Section 30, 

‘‘Crossing, Facilitation and Solicited 

Orders’’ at subsection (e) to permit Floor 

Brokers to utilize the FBMS remotely,18

to enter certain orders that do not 

require exposure in open outcry.19 The 

proposed term ‘‘Remote FBMS 

Transaction’’ would serve to provide 

members and member organizations a 

description of the manner in which a 

Floor Broker may remotely transact 


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20See supra note 10. 

21See supra note 5. 

certain orders while not physically 

present on the Trading Floor. This 

defined term provides the citations to 

the applicable rules and further makes 

clear the current regulatory 

requirements that apply to such remote 

activity. Today, Floor Brokers must 

comply with these regulatory 

requirements provided they are not 

exempt from those requirements 

pursuant to Supplementary Material .08 

to Options 10, Section 6 or Phlx General 

4, Rule 1230. Also, the defined term 

makes clear that all uses of FBMS 

involving open outcry must be 

conducted while physically present on 

the Trading Floor. This proposed rule 

would serve as a guide for Floor Brokers 

conducting Remote FBMS Transactions. 

Options 8, Sections 8 and 12 

The Exchange’s proposal to update 

cross citations to Nasdaq General 4 

Rules within Options 8, Section 8, 

Trading Floor Registration and Options 

8, Section 12, Clerks is consistent with 

the Act. These amendments are nonsubstantive and will clarify the rules. 

The Exchange’s proposal to amend 

Options 8, Section 12, Clerks at 

subparagraph (c) to remove the phrase 

‘‘or assigned to their employer’s clearing 

firm’’ is consistent with the Act. 

Previously, Clearing Members operated 

posts on the Trading Floor. Member 

organizations were able to assign clerks 

to operate from those posts. Clearing 

Member posts no longer exist on the 

Trading Floor and therefore this 

language is obsolete. 

Options 8, Section 22 

The Exchange’s proposal to update 

citations to Options 8, Section 22(a)(3) 

within Options 8, Section 22(a)(2)(E)(i), 

Options 8, Section 28(e)(2), and Options 

8, Section 39 at C–2 is consistent with 

the Act as the rule text corrects 

improper citations. Citations to Options 

8, Section 22(a)(3) should instead refer 

to Options 8, Section 22(a)(3). Options 

8, Section 22(a)(3) does not exist. 

Options 8, Section 28 

The Exchange’s proposal to amend 

Options 8, Section 28, Responsibilities 

of Floor Brokers, to replace the word 

‘‘limit’’ with ‘‘electronic’’ before the 

term ‘‘order book’’ is consistent with the 

Act. The term ‘‘electronic order book’’ 

makes clear that specific order book 

being described. 

The Exchange’s proposal to amend 

Options 8, Section 28 to provide that 

Floor Brokers may enter limit, market, 

stop-limit or stop orders into the 

electronic order book is consistent with 

the Act. Currently, Options 8, Section 

28 only refers to limit orders when it 

should have also noted market, stoplimit and stop orders. With respect to 

remotely entering limit orders into the 

electronic order book through FBMS, 

the Prior Rule Change stated that this 

capability exists to enable Floor Brokers 

to access electronic liquidity and/or to 

clear priority orders on the limit order 

book prior to transacting an order in the 

trading crowd through FBMS.20 Placing 

limit orders on the electronic order book 

does not require exposure in open 

outcry and allows Floor Brokers the 

ability to clear resting Customers orders 

from the limit order book for their 

customers in the event that a Customer 

order had priority on the limit order 

book that would otherwise prevent a 

Floor Qualified Contingent Cross Order 

from being entered in compliance with 

Options 8, Section 30(e).21 Today, Floor 

Brokers may also utilize market, stoplimit and stop orders to clear resting 

Customers orders from the electronic 

order book. Also, placing market, stoplimit and stop orders on the electronic 

order book does not require exposure in 

open outcry. 

Options 10, Section 20 

The Exchange proposes to update a 

reference to Phx Rule 1049 within 

Options 10, Section 20, Options 

Communications, and replace ‘‘Nasdaq 

PHLX’’ throughout this rule with ‘‘Phlx’’ 

are non-substantive amendments that 

will clarify the Rulebook. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition not 

necessary or appropriate in furtherance 

of the purposes of the Act. 

Options 8, Section 2 

The Exchange’s proposal to 

alphabetize the existing definitions 

within Options 8, Section 2 does not 

impose an undue burden on 

competition as the definitions will 

become easier to locate. Amending the 

definition of a Presiding Exchange 

Official at current Options 8, Section 

2(a)(4) to add ‘‘/her’’ next to ‘‘his’’ in 

two places is a non-substantive rule 

change. These amendments are 

intended to bring greater clarity to the 

Options 8 Rules. 

The proposal to define ‘‘Floor 

Transaction’’ as a transaction that is 

effected in open outcry on the 

Exchange’s Trading Floor does not 

impose an undue burden on 

competition. This term is currently 

defined within Phlx Options 7, Section 

1 for the purposes of pricing. The 

defined term is consistent with the use 

of that term in the current rules. This 

defined term will bring greater clarity to 

the Options 8 Rules. The Exchange’s 

proposal to define ‘‘Remote FBMS 

Transaction’’ does not impose an undue 

burden on competition. The proposed 

term ‘‘Remote FBMS Transaction’’ 

would serve to provide members and 

member organizations a description of 

the manner in which a Floor Broker may 

remotely transact certain orders while 

not physically present on the Trading 

Floor. This defined term provides the 

citations to the applicable rules and 

further makes clear the current 

regulatory requirements that apply to 

such remote activity. Today, Floor 

Brokers must comply with these 

regulatory requirements. Also, the 

defined term makes clear that all uses of 

FBMS involving open outcry must be 

conducted while physically present on 

the Trading Floor. 

Options 8, Sections 8 and 12 

The Exchange’s proposal to update 

cross citations to Nasdaq General 4 

Rules within Options 8, Section 8, 

Trading Floor Registration and Options 

8, Section 12, Clerks does not impose an 

undue burden on competition. These 

amendments are non-substantive and 

would clarify the current rules. 

The Exchange’s proposal to amend 

Options 8, Section 12, Clerks at 

subparagraph (c) to remove the phrase 

‘‘or assigned to their employer’s clearing 

firm’’ does not impose an undue burden 

on competition. Previously, Clearing 

Members operated posts on the Trading 

Floor. Member organizations were able 

to assign clerks to operate from those 

posts. Clearing Member posts no longer 

exist on the Trading Floor and therefore 

this language is obsolete. 

Options 8, Section 22 

The Exchange’s proposal to update 

citations to Options 8, Section 22(a)(3) 

within Options 8, Section 22(a)(2)(E)(i), 

Options 8, Section 28(e)(2), and Options 

8, Section 39 at C–2 does not impose an 

undue burden on competition as the 

rule text corrects improper citations. 

Citations to Options 8, Section 22(a)(3) 

should instead refer to Options 8, 

Section 22(a)(3). Options 8, Section 

22(a)(3) does not exist. 

Options 8, Section 28 

The Exchange’s proposal to amend 

Options 8, Section 28, Responsibilities 

of Floor Brokers, at subsection (g) to 

replace the word ‘‘limit’’ with 

‘‘electronic’’ before the term ‘‘order 

book’’ does not impose an undue 


khammond on DSKJM1Z7X2PROD with NOTICES
Federal Register / Vol. 86, No. 136 / Tuesday, July 20, 2021 / Notices 38381 

22 15 U.S.C. 78s(b)(3)(A)(iii). 

23 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6) requires a self-regulatory organization to give 

the Commission written notice of its intent to file 

the proposed rule change at least five business days 

prior to the date of filing of the proposed rule 

change, or such shorter time as designated by the 

Commission. The Exchange has satisfied this 

requirement. 

24 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3 15 U.S.C. 78s(b)(3)(A). 

4 17 CFR 240.19b–4(f)(4). 

5Capitalized terms not defined herein are defined 

in the Rules, By-Laws, and Organization Certificate 

of DTC (‘‘Rules’’), available at www.dtcc.com/∼/ 

media/Files/Downloads/legal/rules/dtc_rules.pdf 

and the Guide. 

6Pursuant to the Rules, the term ‘‘Procedures’’ 

means the Procedures, service guides, and 

regulations of DTC adopted pursuant to Rule 27, as 

amended from time to time. See Rule 1, Section 1, 

supra note 5. Pursuant to Rule 27, each Participant 

and DTC is bound by the Procedures and any 

amendment thereto in the same manner as it is 

Continued 

burden on competition. The term 

‘‘electronic order book’’ makes clear that 

specific order book being described. 

The Exchange’s proposal to amend 

Options 8, Section 28(g) to provide that 

Floor Brokers may enter limit, market, 

stop-limit or stop orders into the 

electronic order book does not impose 

an undue burden on competition. 

Currently, Options 8, Section 28(g) only 

refers to limit orders when it should 

have also noted market, stop-limit and 

stop orders. The Exchange notes that 

Floor Brokers may also utilize market, 

stop-limit and stop orders to clear 

resting Customers orders from the 

electronic order book. Today, placing 

market, stop-limit and stop orders on 

the electronic order book does not 

require exposure in open outcry. 

Options 10, Section 20 

The Exchange proposes to update a 

reference to Phx Rule 1049 within 

Options 10, Section 20, Options 

Communications, and replace ‘‘Nasdaq 

PHLX’’ throughout this rule with ‘‘Phlx’’ 

are non-substantive amendments that 

will clarify the Rulebook. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were either 

solicited or received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing proposed rule 

change does not: (i) Significantly affect 

the protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) become 

operative for 30 days from the date on 

which it was filed, or such shorter time 

as the Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A)(iii) of the Act 22 and 

subparagraph (f)(6) of Rule 19b–4 

thereunder.23

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or otherwise in furtherance of 

the purposes of the Act. If the 

Commission takes such action, the 

Commission shall institute proceedings 

to determine whether the proposed rule 

should be approved or disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

Phlx–2021–41 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to: Secretary, Securities and Exchange 

Commission, 100 F Street NE, 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–Phlx–2021–41. This file 

number should be included on the 

subject line if email is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

internet website (http://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for website viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE, 

Washington, DC 20549 on official 

business days between the hours of 

10:00 a.m. and 3:00 p.m. Copies of the 

filing also will be available for 

inspection and copying at the principal 

office of the Exchange. All comments 

received will be posted without change. 

Persons submitting comments are 

cautioned that we do not redact or edit 

personal identifying information from 

comment submissions. You should 

submit only information that you wish 

to make available publicly. All 

submissions should refer to File 

Number SR–Phlx–2021–41 and should 

be submitted on or before August 10, 

2021. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.24

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2021–15339 Filed 7–19–21; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–92410; File No. SR–DTC– 

2021–012] 

Self-Regulatory Organizations; The 

Depository Trust Company; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Consisting of 

Modifications to the Text of the Rules 

and the Procedures, of the Service 

Guide for the DTC Canadian-Link 

Service and the DTC Operational 

Arrangements Relating to the 

Elimination of the Canadian Dollar 

Settlement Feature of the CanadianLink Service 

July 14, 2021. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’) 1 and Rule 19b–4 thereunder,2

notice is hereby given that on July 12, 

2021, The Depository Trust Company 

(‘‘DTC’’) filed with the Securities and 

Exchange Commission (‘‘Commission’’) 

the proposed rule change as described 

in Items I, II and III below, which Items 

have been prepared by the clearing 

agency. DTC filed the proposed rule 

change pursuant to Section 19(b)(3)(A) 

of the Act 3 and Rule 19b–4(f)(4) 

thereunder.4 The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Clearing Agency’s Statement of the 

Terms of Substance of the Proposed 

Rule Change 

The proposed rule change of DTC5

consists of modifications to the text of 

the Rules and the Procedures,6


khammond on DSKJM1Z7X2PROD with NOTICES